investor relations
3/28/2008 - The Public Eye: Disaster-ready homes lead to income for Deer Valley Corp.
Deer Valley Corp.
HQ: Tampa Founded: 2004 Full-time employees: 453What it does: Deer Valley Corp. (OTCBB: DVLY) manufactures and sells factory-built homes in the Southeastern and South Central U.S. housing market.
Through its Deer Valley Homebuilders subsidiary, the company produces factory-built homes at two manufacturing facilities in Guin, Ala., and Sulligent, Ala. The homes are sold in 13 states through a network of independent dealers and retail centers.
About a year ago, Deer Valley entered the modular segment of the factory built housing industry. A modular home is a home comprised of sections, known as modules, which are built in a factory and transported to a site to be joined together on a permanent foundation.
Modular homes are distinct from factory-built homes, which are constructed in accordance with the federal "HUD Code," according to Deer Valley's March 17 annual report filed with the Securities and Exchange Commission.
The company uses an assembly line manufacturing process to produce a quality home at a significantly lower cost per square foot than a traditional, site-built home, the filing said.
Recent occurrences: Deer Valley is working to finish production this month of 250 two-bedroom cottages that are part of the state of Mississippi's pilot program to test and evaluate future disaster housing units. The company was awarded the contract last year after producing 150 cottages for the program.
Total anticipated proceeds are $19.5 million, the SEC filing said.
The Mississippi contract opened new opportunities for Deer Valley to supply modular homes to large-scale developers, redevelopers and governments in the Gulf Coast region, Charles Masters, CEO, said in a March 5 earnings release.
The company posted $2 million in net income, or 11 cents a share, in 2007, compared to a net loss of $6.5 million, or $1.59 a share, in the prior year. Revenue in 2007 was $63.3 million, down 3.4 percent from 2006, and industry conditions are expected to remain "challenging" this year, Masters said.